Hibbett Story

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HIBB -- USA Stock  

USD 69.06  0.20  0.29%

It appears Hibbett Sports will continue to recover much faster as its share price surged up 5.93% today. The company current daily volatility is 3.06 percent, with a beta of 1.58 and an alpha of 0.42 over DOW. As many millenniums are trying to avoid current market swings, it makes sense to go over Hibbett Sports a little further and try to understand its current market patterns. We will cover the possibilities of making Hibbett Sports into a steady grower in April.
Published over a month ago
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Is Hibbett Sports (NASDAQ:HIBB) a new disruptor?
Hibbett Sports currently holds roughly 178.24 M in cash with 162.44 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 10.74.
On a scale of 0 to 100, Hibbett Sports holds a performance score of 10. The company retains a Market Volatility (i.e. Beta) of 1.5788, which attests to a somewhat significant risk relative to the market. Let's try to break down what Hibbett's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Hibbett Sports will likely underperform. Although it is vital to follow Hibbett Sports current price history, it is good to be conservative about what you can do with the information regarding equity current price movements. The philosophy towards determining future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By evaluating Hibbett Sports technical indicators, you can presently evaluate if the expected return of 0.43% will be sustainable into the future. Please utilizes Hibbett Sports variance, maximum drawdown, and the relationship between the coefficient of variation and jensen alpha to make a quick decision on whether Hibbett Sports current trending patterns will revert.
Investing in Hibbett Sports, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Hibbett Sports along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Hibbett Sports' stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Hibbett Sports in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Hibbett Sports. Your research has to be compared to or analyzed against Hibbett Sports' peers to derive any actionable benefits. When done correctly, Hibbett Sports' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Hibbett Sports.

How important is Hibbett Sports's Liquidity

Hibbett Sports financial leverage refers to using borrowed capital as a funding source to finance Hibbett Sports ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Hibbett Sports financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Hibbett Sports's total debt and its cash.

How Hibbett utilizes its cash?

To perform a cash flow analysis of Hibbett Sports, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Hibbett Sports is receiving and how much cash it distributes out in a given period. The Hibbett Sports cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Hibbett Sports Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 197.72 Million

Hibbett Sports Correlation with Peers

Investors in Hibbett can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Hibbett Sports. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Hibbett Sports and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Hibbett is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Hibbett for more details

Exercise or conversion by Volke Robert of 8000 shares of Hibbett Sports subject to Rule 16b-3

Legal trades by Hibbett Sports insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Hibbett insider trading alert for exercise of restricted stock units by Volke Robert, SVP and CFO, on 13th of April 2021. This event was filed by Hibbett Sports Inc with SEC on 2021-04-13. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Hibbett Sports Further

Hibbett Sports appears to be very steady, given 1 month investment horizon. Hibbett Sports holds Efficiency (Sharpe) Ratio of 0.14, which attests that the entity had 0.14% of return per unit of risk over the last month. Our standpoint towards determining the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Hibbett Sports, which you can use to evaluate future volatility of the firm. Please utilize Hibbett Sports Downside Deviation of 3.43, market risk adjusted performance of 0.3217, and Risk Adjusted Performance of 0.1275 to validate if our risk estimates are consistent with your expectations.
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Can Hibbett Sports build up on the current rise?

Current skewness is at -0.15. Hibbett Sports shows above-average downside volatility for the selected time horizon. We advise investors to inspect Hibbett Sports further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Hibbett Sports future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Hibbett Sports' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Hibbett Sports' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Conclusion on Hibbett Sports

Whereas other entities within the specialty retail industry are still a little expensive, even after the recent corrections, Hibbett Sports may offer a potential longer-term growth to investors. To conclude, as of the 5th of March 2021, our analysis shows that Hibbett Sports responds to the market. The company is fairly valued and projects low probability of financial unrest for the next 2 years. Our ongoing 30 days 'Buy-Sell' recommendation on the company is Strong Buy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Hibbett Sports. Please refer to our Terms of Use for any information regarding our disclosure principles.

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